Help with purchase decision

[jdove]

We're considering purchasing DVC. The current 15% off offer for SSR seems appealing, based on the following personal factors:

(1) We will typically want to stay in the low season, Sun-Thurs -- probably at any of the Epcot-centric resorts (Beach Club, BWV) or at Wilderness Lodge. My thought is, since we're probably generally not going to want Xmas, spring break, etc. -- we should not have an issue getting another property at the 7 month mark.

(2) The extension until 2054 is appealing, as this can transfer an additional 12 years to my children.

(3) The price per is less at SSR -- if worst case is we have to stay there -- that seems not to be such a bad worst case, the resort looks nice.


So, based on these factors, I have a few questions I was hoping you might be able to help me with:

* First, is my thought process above sound?
* Is it generally easier to find a mid-January room at a place like BC or BWV at the 7-month mark -- or, is even that problematic?
* If I decide to sell this in a few years -- is it likely that the initial investment will loose more than, say, 20% of its value?
* Is it easy to sell the points if I cannot use them in a given year?

Thanks in advance for your help!

JDove

 

[calypso*a*go-go]

Your thought process is correct. As long as you are traveling during non-peak times, it shouldn't be a problem booking other resorts at the 7th month window (for the time being, anyway). Do keep in mind though that the typical "peak" times can be different for DVC as members try to stay during the low-point seasons whenever possible.

You will probably need to plan ahead and call MS on the exact day to get the accomodations you want. As SSR keeps selling and other DVC resorts are added, there is always the threat that more and more members will be trying to obtain ressies at the smaller resorts like BWV, BCV, and VWL. At some point this could become a problem but as long as you are happy with SSR as a back-up, everything should be fine.

Renting points is very easy as long as you don't get yourself in a bind and wait until the last minute. Try to educate yourself as much as possible on the banking/borrowing rules to get the best use of your points.

No one can predict what will happen if you try to sell your contract...however, many members have not only recouped their initial investment, but also made a profit. Of course, there is always the scenario of a natural or man-made disaster changing that. But hey, don't sweat the small stuff.

 

[LisaS]

First of all, welcome to the DVC boards. I'm fairly new to this part of the DIS boards myself. DH and I bought a BWV resale in July '05 so we recently went through the same thought process you're going through.

We're considering purchasing DVC. The current 15% off offer for SSR seems appealing, based on the following personal factors:

(1) We will typically want to stay in the low season, Sun-Thurs -- probably at any of the Epcot-centric resorts (Beach Club, BWV) or at Wilderness Lodge. My thought is, since we're probably generally not going to want Xmas, spring break, etc. -- we should not have an issue getting another property at the 7 month mark.

You'll find many threads on this board that recommend buying where you want to stay. In addition to holidays, DVC resorts are busy at some times you might not expect. Early December is one of those times due to low points, holidays decorations and less busy parks. VWL in particular but also BCV and BWV will book up quickly for the first two weeks in December and it will be quite difficult for non-owners to get into these resorts for that time period. The Epcot resorts will also be popular during Epcot's Food & Wine festival (end of Sep through mid Nov). Since we bought into DVC primarily as a way to get affordable accommodations at an Epcot resort, that's where we bought (BWV in our case). Unless you are buying hundreds of points, the price difference isn't that great, especially when you average it out over the remaining lifespan of the contract -- a small price to pay to be assured we can book where we want to stay at the 11-month window.

(2) The extension until 2054 is appealing, as this can transfer an additional 12 years to my children.

This was easy in our case since we don't have children and will be in our 80s when our BWV contract runs out. Can't really offer any advice to you on this.

(3) The price per is less at SSR -- if worst case is we have to stay there -- that seems not to be such a bad worst case, the resort looks nice.

I haven't been to SSR but it does look very nice and there are many good reviews here on the DIS boards. We're looking forward to staying there at some point, but we just love the Boardwalk/Epcot resort area so personally, I would be disappointed if we wanted to go during the Food & Wine festival and couldn't get into BWV. So if you will be just as happy staying at SSR, then you can save around $10-$15/point on your initial purchase price buying SSR at the current discounted price. On the other hand, you can get resale contracts at BCV in the mid to high $80s/point and BWV in the low $80s/point (plus closing costs) so if you are buying 200 points, say, you might spend an extra $2000-$3000 for a resale contract at BWV or BCV over what you would spend for SSR. With over 30 years remaining in the resale contracts, that's less than $100/year to "buy where you want to stay". If you really want to stay elsewhere will the cost difference be worth it if you end up booking SSR at 11 months and then call back at 7 months and maybe end up on a waiting list?

Also look at the dues for each resort you're considering when estimating your total cost of ownership over the lifetime of the contract. Expect dues to go up on average 4% per year. BWV's dues are among the highest but again in my mind guaranteeing our preferred location was more important than cost.

So, based on these factors, I have a few questions I was hoping you might be able to help me with:

* First, is my thought process above sound?

See above

* Is it generally easier to find a mid-January room at a place like BC or BWV at the 7-month mark -- or, is even that problematic?

Getting into BCV or BWV in mid-January at the 7-month mark shouldn't be a problem. Consider whether this is the ONLY time you plan to visit WDW during your many years as a DVC owner or if your travel patterns will change over time.

* If I decide to sell this in a few years -- is it likely that the initial investment will loose more than, say, 20% of its value?

Some resorts have actually appreciated in value. You've probably noticed that BCV resales command the highest price. Resale prices for BWV and VWL continue to go up as well due to supply and demand. I expect that will continue to be the case for a while. At some point the balance will tip as the remaining years in the contracts become a factor. Disney does it part to keep resale values high for all of their resorts with their ROFR ("Right of First Refusal") policy where they have the right to buy any DVC contract up for resale. If you really think you might want to sell in a few years, I think BCV, BWV or VWL will still have high resale values over the short term.

* Is it easy to sell the points if I cannot use them in a given year?

I've never rented out points but a lot of people do. Take a look at the DVC Rent/Trade board and you'll get an idea of how active the point rental market is.

Thanks in advance for your help!

JDove

You're welcome.

 

[paults]

 

[Steamboat Bill]

I first bought at VWL in 2001 and then bought in SS pre-construction. I then sold VWL for a profit using the Timeshare store and paid off my SS purchase. I am now an owner with Zero mortgage and my dues are lower at SS than VWL.

 

[byoung]

Hope to Welcome you Home soon.

 

[Disney Doll]

Generally, your theory will work, but you must be prepared to sometimes not be able to get a room at one of the Epcot area DVC resorts.

In the event that occurs, can you be happy at SSR?

We own at OKW. Generally I plan the vacation at the 11 month wiondow and book a unit at OKW. Then I am settled in my mind that I will have somewhere to stay, no matter what.

If I decide at the 7 month window that I want tro try somewhere else, I do so. Sometimes there is availability, sometimes not. I have oput myself on the waiting list, with my ace in the hole being that I know I am booked at OKW. If it comes through for the 7 month window choice, that's great. If not, I have OKW, which I also love, so not a huge issue.